sebi:CO/158/CIS/02/2005
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Facts / Headnote
Direction to wind up existing schemes and repay investors in the manner specified in Regulation 73 within 5½ months from receipt of the order; permanent registration denied.
Provisions invoked
- s. 11B
- s. 4(3)
Regulations
- Reg. 69
- Reg. 71
- Reg. 73
- Reg. 65
- Reg. 11
- Reg. 199
- Reg. 10
- Reg. 71(1)
- Reg. 40
- Reg. 71(2)
- Reg. 73(9)
- Reg. 71(4)
Parties
- M/s. Guru Teak Investments (Mysore) Pvt. Ltd.
Holding
The company failed to comply with the conditions of provisional registration and violated Regulations 69 and 71 of the CIS Regulations, and therefore is not eligible for permanent registration under Regulation 10 and is directed to wind up its schemes and repay investors in the manner specified in Regulation 73 within 5½ months.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ DIRECTIONS UNDER SECTION 11B OF THE SEBI ACT, 1992 READ WITH REGULATIONS 65 AND 73 OF THE SEBI (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1999 IN THE MATTER OF M/S GURU TEAK INVESTMENTS (MYSORE) PVT LTD. 1. M/s. Guru Teak Investments (Mysore) Pvt Ltd. (hereinafter referred to as ‘company’), having its head office at No.874, “Raineo House”, 1 floor, Dr. Modi Hospital Road, Wes Chord Road, Bangalore-560086 was granted provisional registration with effect 01.07.2001 under the provisions of regulation 71(1) of SEBI (Collective Investment Schem Regulations, 1999 (hereinafter referred to as CIS Regulations). The said provisional registration was communicated vide letter dated 09.07.2001 subject to the conditions specified under regulations 71. Such conditions inter alia included obtaining of credit rating of the schemes, appraisal of the scheme, creation of trust etc.
11. The company vide its letter dated 03.12.2004 submitted a compilation of documents in compliance of regulation 71(1) of CIS Regulation and requested for the gran permanent registration certificate.
g) Financial Evaluation of Plantation scheme : Among the crop development expenses, the land development cost were found to be very high as the company has spent considerable amount leveling and for supply of soils in huge quantities from outside source. This cost could be minimized. Similarly, the company is spending huge exp other costs which include construction of huge water storage structures and water harvesting structures like tanks / farm pumps. The cost structures could be completely eliminated.
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Source: SecMarx — sebi:CO/158/CIS/02/2005. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.